Tuesday, November 27, 2012

Selling Your Home During the Holidays



 The holiday season is definitely the busiest time of the year! There are gatherings left and right. Families are travelling together to visit loved ones. Children are back from school for the holidays. 

Many sellers take their homes off the market during Christmas and New Year to enjoy the holiday season. Taking the home off the market will allow the owners to use the house as a venue for parties and family gatherings.

Selling a home during the holidays can be challenging. There must be a balance between family time, showings and open houses.  Many sellers do not realize that Realtors and buyers are happy to schedule a showing around parties and family gatherings at this time of the year.

If your home is for sale, consider allowing other family members to host your family gatherings, so your house will be available for showings. You can also plan a family activity while your home is being shown. Maybe watch a holiday movie or get an ice cream or a yogurt. 

Homes can be more attractive during the holidays. It doesn't have to be over the top decoration, maybe a basket of candy canes near the door, holiday background music or just a simple light displays to window areas can make a simple house look very beautiful. Christmas trees, wrapped presents, candles can add a nice touch but it should be kept minimal and elegant.  If you are unsure on how to decorate your home, you may refer to home decor magazines for pictures and examples.

Great photos are the key to catch the eye of the potential buyer.  Take some photos with your holiday decorations but also make sure to include photos without the decorations. This will allow the buyer to imagine how their future home would look like after the holiday season.

The best part about selling during the holiday season is that there is less competition. While other sellers took their homes off the market during the holidays, your home will be the most attractive home on the block.  The holiday season can be a wonderful time for families, but with few compromises, you can make a sale during the busiest time of the year.





Tuesday, November 13, 2012

President Obama on 2nd Term


President Obama has been re-elected president. What does this mean for the housing market?
When Obama stepped in as the US President in 2008, home prices were crashing, foreclosures were on record high. Former President Bush had just initiated the bailout of Fannie Mae and Freddie Mac, the government-backed entities that agree to repay mortgages in the event that the original borrower fails to pay their obligations.

With the housing market suffering, the Obama administration placed several housing policies to help homeowners from going under.  After four years in office, the US housing economy has yet to recover. 

One of the things that is standing in the way of full housing recovery is tight credit.  Mortgage rates are at historic lows, but there are too many potential home buyers that are not able to take advantage of these low rates because of damaged credit.

President Obama didn't tackle the issue of housing during his campaign. With that being said, Fannie Mae and Freddie Mac are expected to remain through the mid-term elections in 2015. 

David Stevens, President and CEO of the Mortgage Bankers Association said that the MBA is asking President Obama to appoint a federal housing policy coordinator who can make sure that there will be a better communication between federal and regulatory agencies to effectively implement different housing policies beneficial to home owners. (Source: www.cnbc.com)

As for millions of underwater borrowers, the Obama administration has consistently said it wants to extend mortgage refinancing to take advantage of today’s record low rates. (Source: www.cnbc.com)

Friday, November 9, 2012

Real Estate As An Alternative Investment


The term "alternative investments" has been popular the last few years. This trend began when investors started looking for others ways to invest their dollars without using the traditional route of equity market.  Equities are too volatile in the current setting that investors try to avoid playing in that market.

What does an investor do when the equity market becomes too risky? The answer could be to invest in alternatives. Alternatives come in many forms. They can be commodities or real estate.  Real estate is the area where most people are familiar with, so most people are likely to invest in real estate. 

Investing in real estate holds certain benefits such as additional income (in the form of rental income), tax benefit and some stability. 

The question is when do you invest in real estate? Like anything else, hit it when it's cheap. Real estate is cheap when demand is down, and demand is down when economy is weak. While the economy is weak, real estate is less expensive and interest rates are low. If you decide to buy now, you can lock in low rate mortgage loan. Real estate generally goes up in value. In my opinion, now is a good time to invest in real estate.

Making a real estate investment is pretty straightforward. You look for a piece of property in a prime location, and if possible, with minimum to no remodeling required, get a mortgage from the bank, pay the closing fees and you're done! You are a Real Estate Investor! But no investments are successful unless you put in time and effort. Make sure to do your homework and calculations before investing in Real Estate. 

Rentals are great options for investing, it provides you with a secondary income without too much effort on your end. (Well, except for the regular maintenance of your rental) Or you can invest on a vacation home. You can use it for your own personal use or you can rent it out during the summer where tourists are visiting our great State, Alaska. Just advertise it on Craigslist and I'm sure someone will rent it.

In a whole, Real Estate as an alternative investment could be a good addition to your portfolio. However, make sure that you pay attention to the details, if you cannot take the time to learn the details, consult with an expert Realtor who knows the real estate market.  There is a lot of things you need to know, but the benefits could be worth your time and effort.  If you need some advice in real estate investing, please don't hesitate to contact me.